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A GUIDE FOR CONNECTING GENERATION THAT FALLS UNDER G59/2 TO THE DISTRIBUTION NETWORK
November 2011
Version 3.3
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Energy Networks Association. Specific enquiries concerning this document should be addressed to: Operations Directorate Energy Networks Association 6th Floor, Dean Bradley House 52 Horseferry Rd London SW1P 2AF In the event that there is any conflict or contradiction between this Guide and the engineering standards and codes referenced in the Guide, the terms of the referenced documents will prevail. These include inter alia Engineering Recommendation G83/1-1, Engineering Recommendation G59/2, the Distribution Code, the Grid Code, the Connection and Use of System Code and the Balancing and Settlement Code.
to describe two key financial incentives for Distributed Generation: Feed-in Tariffs (FITs) and Renewables Obligation Certificates (ROCs). What is not covered in the Guide? In addition to arranging a connection to the network, you will also have other issues to address in order to get your scheme up and running. These include: Designing, installing and operating the generation installation Buying and selling electricity (beyond FITs and ROCs) Planning the project Financing the project Resolving local planning issues These issues are outside the scope of this Guide. The format of the Guide This Guide has been written and formatted with you, the reader, in mind. We have tried to make this Guide as clear and easy to read as we can, bearing in mind that some of the issues discussed are technical and complex. In particular: Terms which may be unfamiliar are defined or explained in boxes around the main text. Key points and summaries are highlighted. Text is emboldened for emphasis.
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B. The Role of Distributed Generation C. An Overview of Getting connected: G59/2 D. The Connection Application Connection Application ProcessG59/2 Generation Licensing E. Costs and Charges Connection Costs Ongoing Costs F. Selling electricity Feed-in Tariffs Renewable Obligation Certificates G. Technical and Commercial Interfaces Competition in Connections Contracts and Agreements Operational Issues Glossary References Revisions
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Generating plant
The changing UK power system an increasing amount of Distributed Generation is connecting to the local distribution network in addition to the large generating plants connected to the transmission system
Transmission system
Distribution network Distribution network Commercial and industrial customers with Distributed Generation
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Introduction
The power sector in the UK has been undergoing changes since the industry was privatised in the early 90s. This is due to the industry adapting to privatisation, changes in environmental awareness, technological developments and Government policy. A key change is the movement from a relatively small number of large, centrally controlled power stations connected to the transmission system towards a greater number of generating plants connected to both the transmission and distribution systems. We illustrate the traditional and the changing power sector, and introduce the parties involved. Apart from the physical structure of the power sector, there is also a commercial structure. The trading chain differs from the physical flow of electricity. Parties are introduced that do not necessarily own any assets but help to organise they buying and selling of electricity. The roles of key parties are discussed, and other parties that you may come across as you develop your Distributed Generation scheme are defined.
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Key Player Generators Transmission System Owners (TSOs) Distribution Network Operators (DNOs)
Domestic customers
Domestic customers
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Generating plant
Distribution network Distribution network Commercial and industrial customers with Distributed Generation
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Commercial Structure
The commercial structure of the industry The commercial structure of the electricity industry in Great Britain provides a competitive market in electricity retailing. This enables customers to contract with any one of a number of competing electricity suppliers. There is a wholesale electricity market, in which suppliers buy electricity in bulk from competing electricity generators. The wholesale market is governed by British Electricity Trading Transmission Arrangements (BETTA), which was introduced in 2005. The transmission and distribution systems are owned and operated by regulated monopoly businesses. The transmission system owners are as follows: National Grid Electricity Transmission (NGET) in England and Wales Scottish Power in southern Scotland (SP Transmission Ltd) Scottish and Southern Energy (SSE) in northern Scotland (Scottish Hydro Electric Transmission Ltd, or SHETL) NGET is also the System Operator for the whole of Great Britain.
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The Scottish transmission system owners are also DNOs in their respective regions. Seven DNOs operate the distribution networks in England and Wales. Transmission and distribution businesses recover the costs of operating and maintaining their systems by levying use of system charges on electricity traded using their network. A description of trading Generators sell the electricity that they generate in the wholesale market or directly to suppliers. Suppliers sell the electricity they purchase to customers. The majority of trading occurs in advance of the time of use. If you install Distributed Generation you can use the electricity you produce on-site, thus lowering your electricity demand and bills. You can also sell electricity to customers, suppliers or, depending on the size of the generation, on the wholesale market. You will read more about power trade options in Section F. Selling Electricity.
Key Organisations
Distribution Network Operator (DNO) A DNO is a company that: Owns, operates and maintains a public electricity distribution network Holds a Distribution Network Operator Licence There are six DNOs in Great Britain. The regions where they operate are shown on the map below. DNOs can form part of a group that undertakes other areas of business as well, e.g. electricity supply. However, you will Map of DNO regions in the UK have to interface with the network operator business. Under the terms of their licence, each DNO is allowed to distribute electricity both inside and outside its legacy geographic area. To facilitate competition in supply, each DNO is required to allow any licensed supplier to use its distribution network to transfer electricity from the transmission system (and from Distributed Generation) to customers. DNOs charge suppliers for using the distribution system.
For DNO website details, please see Where to Find More Information at the end of this section.
What is Distributed Generation? Your scheme is classed as Distributed Generation (DG) if it operates while electrically connected to the distribution network. The term Embedded Generation is sometimes used, but in this Guide we will use the term Distributed Generation. Your generating plant could be connected directly to the DNOs network, or connected indirectly via a privately owned network. This is shown schematically on the next page. You could consume the electricity you generate to reduce your consumption from the network. Alternatively you could export some or all of it to the DNOs network.
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Key Organisations
Independent Distribution Network Operators (IDNOs) An IDNO designs, builds, owns and operates a distribution network, which is an extension of an existing DNO network. They typically build network for new developments such as business parks, retail and residential areas and leisure facilities. IDNOs differ from DNOs in that: they do not have service areas (e.g. they are not tied to a geographical location); although they are regulated like DNOs they have fewer licence conditions to meet. IDNOs differ from private networks in that IDNOs, like DNOs, are licensed. You may be connected to an INDOs network instead of a DNOs network. Your local DNO will be able to inform you if this is the case. Note: Throughout the Guide we refer to DNOs. However, where you are connected to an IDNO network, please read this as IDNO.
Customer loads
Site loads Generating plant connected directly to the DNO / IDNO network Site Boundary Generating plant connected indirectly to the DNO / IDNO network via private network.
Private Networks: Your generating plant could be connected directly to a DNOs network, or connected via a privately owned network. For example, private networks can be owned by hospitals, airports, industrial sites, etc. This Guide is not intended to address connection to private networks. If you are connected to a private network, you should discuss your plans with the network owner as soon as possible.
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Key Organisations
Energy Service Company (ESCO) A Government paper defines ESCOs as a company that provides a customer with energy solutions rather than simply being an electricity or gas supplier. ESCOs can enter into long-term contracts to provide information, installation, finance and operation and maintenance. There are various models the ESCO can take. It can work on a performance contract, where it guarantees energy savings and makes charges based on the extent to which these savings are achieved. This model is typically used by commercial and industrial customers. ESCOs can also work for communities, servicing a group of customers in the same local area. ESCOs may also develop into a household model, to provide energy efficiency savings and small scale generation for home owners, rather than just supplying electricity. Suppliers Supply is the retail of electricity. Suppliers buy in bulk, and then sell to consumers. They are responsible for providing bills and customer services, and arranging metering and meter reading. Electricity supply is a competitive market so you can choose and change your electricity supplier.
Other Organisations
Generators Generators own, operate and maintain power stations which generate electricity from various energy sources, e.g. coal, gas, hydro and nuclear. Newer generation technologies include wind, solar, tidal and wave. For more on generating technologies, see the end of this section for links to more information. Transmission System Owner As mentioned, there are three transmission licence holders in Great Britain; National Grid Electricity Transmission, Scottish Power and Scottish and Southern Energy. They own and maintain the high voltage transmission system, known as the National Electricity Transmission System, referred to in this Guide as the transmission system. Transmission System Owners are responsible for making sure that transmission services are available to the System Operator. System Operator Electricity cannot be stored and so demand has to be balanced with generation on a second by second basis by the System Operator. National Grid Electricity Transmission (NGET) is the System Operator in Great Britain. To match generation with demand, the System Operator could ask generators to increase the output of their plant. Conversely, some large customers on certain contracts can be asked to reduce their demand.
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Other Organisations
Balancing and Settlement Code company Elexon is the company that manages the balancing and settlement of electricity trading. Imbalance can arise from: Generators not providing all of the electricity that they have been contracted to provide; and Suppliers contracted customers consuming more or less electricity than they have contracted for. When this occurs, the System Operator faces additional costs because it may have to buy or sell electricity at short notice to keep the system in balance. The charges (prices) the participants face for being out of balance are based on these additional costs. The Balancing and Settlement Code (BSC) governs the operation of the balancing mechanism. Regulator Ofgem is the Office of Gas and Electricity Markets. Ofgem is responsible for: regulating prices and performance in the monopoly elements of the electricity supply industry; and resolving disputes between different parties when necessary. Ofgem is also responsible for granting licences for the following activities in the power sector: Generation Transmission (and interconnection, a transmission link with another country) Distribution Supply Generation licence requirements for Distributed Generation are discussed in Section D. The Connection Application: Generation Licensing.
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South Scotland North East England North West Yorkshire East Midlands West Midlands Eastern England
UK Power Networks Eastern www.ukpowernetworks.co.uk/ Power Networks products-services/networks/ index.shtml Western Power Distribution www.westernpower.co.uk South Wales SSE Power Distribution Southern Electric Power Distribution UK Power NetworksLondon Power Networks UK Power Networks South Eastern Power Networks www.ssepd.co.uk
London
Western Power Distribution www.westernpower.co.uk South West SP Energy Networks Cheshire, Merseyside and North Wales www.spenergynetworks.com
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Introduction
From the 1950s until relatively recently, the design and operation of most electricity distribution networks in the UK has been based on a key assumptionthat power always flows from higher voltage systems to lower voltage systems to the customer. The increased penetration of DG is changing this landscape. There are three key drivers behind increasing levels of DG: Environmental issues; Technological innovation; and New Government Policy. These are discussed, as well as some of the benefits and challenges of DG. The benefits and challenges are quite complex; they are evolving as DNOs experience with DG increases. We refer to some useful documents and reports for further reading on this topic.
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such as oil, gas and coal, are delivered by reliable suppliers. This also ties in with having a diverse mix of energy sources, which would make the UK less vulnerable to a restriction in one resource. Low Carbon and Fuel diversity: Government has developed policy in response to environmental concerns regarding emissions reductions, and also to try to develop a more sustainable energy sector. Fossil fuels are limited resources; as such they will increase in price as they get more scarce, and are widely competed for. Reducing reliance on fossil fuel fired generation in favour of renewable energy sources, such as wind, solar and hydro, is a more sustainable path. Competitively priced: these goals are all achievable, but at what cost? Government wants to ensure that policy achieves these aims but that energy prices are maintained at prices that are affordable. Two relevant pieces of legislation have been introduced, which are: Climate Change Act 2008 Energy Act 2008 The Climate Change Act sets out legally binding targets for emissions reductions. As such, policy has been developed, which introduces initiatives such as: Climate Change Agreement (Climate Change Levy) Zero Carbon Homes As well as legislation from the UK Government, the EU also introduces relevant legislation and initiatives, such as the EU Emissions Trading System.
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Introduction
The tasks that you have to undertake to get connected vary with the size of the generating plant. In general, the bigger the plant, the more complex the connection requirements. This section of the Guide focuses on the information exchanges that take place between you, as the developer, and the DNO. It also presents the key actions that you have to complete to connect a generating plant. These tasks are based on the requirements set out in Engineering Recommendation (ER) G59/2, which is described in the box on the next page. The key stages of the connection process are: A Project Planning Phase: you formulate your plans for the generation scheme, consulting published information to identify opportunities for connecting to the network. An Information Phase: you submit information about the proposed plant to the DNO, and the DNO discusses the issues and costs involved. A Design Phase: you submit a formal connection application to the DNO. In response the DNO produces detailed connection designs and costings. Areas of Contestable work are identified. A Construction Phase: you enter into a contract with the DNO. Either the DNO, an Independent Connections Provider (ICP) or a combination of the two construct the connection infrastructure. A Testing and Commissioning Phase: you and the DNO complete the necessary agreements. You test and commission the generating plantthe DNO may wish to witness this. The DNO carries out necessary tests on the connection, and energises it. We will discuss these phases in more detail. They are illustrated on the next page.
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Introduction
PROJECT PLANNING PHASE Consult published information to identify connection opportunities
INFORMATION PHASE You and the DNO exchange information about the generation project and the network
DESIGN PHASE Submit a formal connection application. The DNO prepares the connection design and issues a Connection Offer.
CONSTRUCTION PHASE The DNO and possibly an ICP constructs the connection infrastructure.
TESTING & COMMISSIONING PHASE You test and commission the generating plant. The DNO energises the connection.
What is Engineering Recommendation G59/2? Engineering Recommendations (ER) are documents that set out standards and guidance on technical requirements. ER G59/2 is called Recommendations for the Connection of Generating Plant to the Distribution Systems of Licensed Distribution Network Operators. It sets out the requirements that you must meet before the local DNO will allow your generating plant to be connected to the network. The purpose of the document is to provide guidance to you and to DNOs on all aspects of the connection process. G59/2 is available on the Energy Network Associations website for a fee of 185.00.
What is Contestable work? And what is an Independent Connections Provider? There are certain tasks that DNOs do themselves, so that they can maintain co-ordination and control of their networks. These are called Non-contestable work, as they are not open to competition. Conversely, when work is open to competition it is called Contestable work. Contestable work can be conducted by Independent Connections Providers (ICPs). For more on this, see the Section G. Technical and Commercial Interfaces: Competition in Connections.
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Quick check:
Your generating unit falls under G83/1-1 if: It meets the size definition of SSEG The generating unit has a type testing annex in G83/1-1 and is approvedi.e. it has been tested in accordance with the appropriate annex and has passed the tests OR the generating unit does not have a type testing annex but is connected through an inverter that has been type tested in accordance with one of the annexes in G83/1-1 (this second approach is valid until 2nd March 2012) The generating unit is installed in accordance with G83/1-1 If you are installing: A single generating unit that falls under G83/1-1 Multiple generating units that fall under G83/1-1 within different customer sites and in a close geographic region Refer to: Getting connected: SSEG G83/1-1 Stage 1 Getting connected: SSEG G83/1-1 Stage 2
What is Engineering Recommendation G83/1-1? And what is SSEG? Engineering Recommendations (ER) are documents that set out standards and guidance on technical requirements. ER G83/1-1 is called Recommendations for the Connection of Small-scale Embedded Generators (Up to 16 A per Phase) in Parallel with Public Low-Voltage Distribution Networks. Some of the appendices of G83/1-1 are available for freeplease see the end of this section for where to find more information. G83/1-1 is available on the Energy Network Associations website for a fee of 90.00. Small-Scale Embedded Generation (SSEG) is low voltage generation. SSEG is defined in G83/1-1 as a source of electrical energy rated up to and including 16 A per phase, single or multiple phase, 230/400 V ac. This corresponds to around 3.68 kW on a single-phase supply and 11.04 kW on a three-phase supply.
What is approved equipment? An approved Small-Scale Embedded Generating unit is defined in G83/1-1 as one that has been shown to meet the type verification tests in the appropriate annex of this Engineering Recommendation. The annexes contain methodologies for testing certain types of SSEG against a set of test conditions to demonstrate compliance with G83/1-1. If the conditions are met, the equipment can be considered approved. The manufacturer produces a Type Test Certificate to demonstrate compliance. The equipment is then Type Verified or Certified.
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In summary, the key tasks in the project planning phase are to: Look at publicly available network information to identify opportunities and constraints Make contact with the DNO in an early stage to discuss your project and obtain additional information Decide whether you want to get feasibility studies done to assess possible connection layouts and indicative costs What is a Long Term Development Statement (LTDS)? DNOs prepare a Long Term Development Statement (LTDS) every year. The purpose of the LTDS is to make sure that network information is available in the public domain. The information should assist anyone considering opportunities (e.g. connecting generation to the distribution network) and help potential users to identify constraints in the network. The LTDS contains information on the network, and covers areas such as: Development plans for the network Identifying parts of the network that are likely to reach certain limits within five years (e.g. thermal overloading) Any plans the DNO has to relieve these stressed areas An introductory chapter is generally free of charge and available on the DNOs website. It contains an overview of the LTDS that will allow you to understand the scope of information provided, and assess whether it will be useful to you. Prices for the detailed information of the LTDS vary; some DNOs do not charge at all; others typically charge between 25 100. Links to the LTDSs are at the end of this section, under Where to find more information. Note: The LTDS covers the primary system only, and as such does not contain detailed information on 11 kV networks.
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The Distribution Code DNOs are obliged to maintain a Distribution Code under the terms of their licence conditions. The Distribution Code contains technical parameters and considerations relating to the connection to and use of distribution systems. Key areas that are covered by the Code include: General conditions Planning and connection Operation Data registration There are also two guidance notes for information. The requirements in the Distribution Code are explained in more detail in G59/2, and will be enacted by the Connection Agreement. For more information on the Distribution Code, refer to the Distribution Code website: www.dcode.org.uk
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Standard Licence Condition 15 In order to maintain their licence to own, operate and maintain a distribution network, DNOs are required to comply with a set of licence conditions, called Standard Licence Conditions (SLC). SLC15 is called Standards for the provision of Non-Contestable Connection Services. It only applies when you are requesting Non-contestable services from the DNO (as opposed to both Contestable and Non-contestable services). SLC15 sets standards in terms of timescales for the DNO to provide quotes, respond to design submissions and complete final works and phased energisations as Non-contestable connection services. Distribution Price Control Review 5 (DPCR5) proposes to revise and extend this Licence Condition to set out timescales for complete works, post acceptance scheduling and commence connections works. The standards only become effective when the DNO has the required information and payment.
Section 16 of the Electricity Act The Electricity Act (1989) is one of the primary pieces of legislation governing the power sector in the UK. Section 16 of the Act is called Duty to supply on request and sets out the DNOs obligation to provide connections for electricity supply. This is the legislation that governs applications for generation connections where the DNO is requested to undertake both the Contestable and the Non-contestable work.
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Current developments: A common application form has been developed by the Energy Networks Association. Please see Section D. The Connection Application for more information.
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Dealing with disputes: If you are not satisfied with a particular aspect of service during the process of connecting your generation, your first port of call should be the party with whom the issue lies, e.g. the DNO, supplier, meter operator, NGET, etc. If you cannot resolve the issue with the party directly, you can contact the Energy Ombudsman: www.energy-ombudsman.org.uk If you are still unable to resolve the matter, as a last resort it can be referred to Ofgem, the regulator.
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Select and invite ICPs for competitive tender (see Section G. Technical and Commercial Interfaces: Competition in Connections) You, or the ICPs on your behalf, submit an application to the DNO to establish Point of Connection and enable Non-contestable design work to be carried out
You submit a formal application to the DNO with supporting information so that all the connection works can be designed
The DNO designs and prepares a quotation for all the connection works and submits this to you
You review and discuss the DNOs quotation for all connection works The DNO provides Point of Connection information and quotations for Non-contestable work to you or the ICPs No The ICPs prepare quotations for Contestable work Are you happy with the DNO connection quotation?
You review and discuss ICPs quotations for Contestable work and appoint ICP
You, or the ICP on your behalf, review and discuss the DNOs quotation for Non-contestable work
No You, or the ICP on your behalf, accept the DNOs Non -contestable work offer
Yes
Key Action taken or question answered by: You The DNO An ICP
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Adoption Agreements If an Independent Connections Provider (ICP) has constructed some of the connection infrastructure, an Adoption Agreement is required to define the terms under which the DNO will take these connection assets into their control and ownership. This is normally sent out with the formal connection offer in the design phase. The agreement includes details of the responsibilities of all three parties (you, the DNO and the ICP) concerning the construction of Contestable work.
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Connection Agreements The Connection Agreement covers the conditions under which your generating plant is allowed to: i. ii. be physically connected to the DNO network; and remain connected and energised while the network is operating normally.
For example, they set out technical and safety requirements. These agreements are likely to be standard documents with scheme-specific annexes. They will probably be prepared by the DNO for you to discuss, agree and sign.
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Distribution Price Control Review: Ofgem administers a price control regime which allows DNOs to earn a fair rate of return while limiting costs passed on to customers. Price control periods are generally five years. Distribution Price Control Review 5 (DPCR5) is expected to run from April 2010 to 2015. For more information see the Price Control section of the Ofgem website. Ongoing responsibilities: Although the focus of this Guide is to inform you about the process of connecting your generation to the distribution network, once its connected you have a responsibility to keep it maintained by someone who is competent to do so. You also need to comply with Health and Safety requirements. Appendix 13.8 in ER G59/2 is called Main Statutory Obligations and summarises the main obligations on generators.
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Health and Safety considerations: Safety is very important in the design of generation connections, and there are a number of sources of information and help available to assist with safety engineering. The safety requirements for DG connections are set out in ER G59/2. This document references the Regulations and Acts that informs these requirements, such as the Electricity Safety, Quality and Continuity Regulations (ESQCR) 2002, and also lists the relevant British Standards. You can find out more about Health and Safety aspects of DG connections on the following websites: The Electrical Safety Council (ESC) www.esc.org.uk The Energy Networks AssociationSafety, health and environment and Safe and Well: http://energynetworks.squarespace.com/she/ http://energynetworks.squarespace.com/safe-and-well/
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Long Term Development Statements (LTDS) DNO Electricity North West Northern Power Grid SP Energy Networks SSE UK Power Networks Link to LTDS
http://www.enwl.co.uk/about-us/long-term-development-statement http://www.northernpowergrid.com/downloads/financialinfo/longtermdev.cfm http://www.scottishpower.com/OtherDocuments.htm http://www.ssepd.co.uk/LTDSs/ http://www.ukpowernetworks.co.uk/products-services/networks/knowledgecentre/long-term-development-statement.shtml Development.aspx
Introduction
This section of the Guide describes how to make a connection application to a DNO. It focuses on some specific actions that you will need to take as part of the overall process of Getting Connected, which is described in Section C of the Guide. Details of the connection application itself are provided, with reference to the Common Application Form which has been developed by the Energy Networks Association on behalf of the DNOs. The timescales involved in making a connection application are described, as well as the obligations of the DNO to respond to your application. Issues associated with the costs of connections are also discussed. This section of the Guide is mainly intended for developers of generating plants which are covered by Engineering Recommendation G59/2. The connections procedure, as well as the assessment of the likely impact of your scheme on the distribution network as a whole, is more complex for generation of this size, and requires careful study by the DNO. This section therefore includes details of the sort of technical studies which DNOs need to carry out, and the likely requirements they will have for data from you about the proposed generation scheme.
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Estimated data: If actual data is not available at the time of completing an application form, you may provide a reasonable estimate of the actual data. You should indicate if data is estimated. Where estimated data is submitted to the DNO, and the final data is significantly different from the estimated data, this may affect the validity of the Connection Offer. It is therefore important that the information you provide is as complete and accurate as possible.
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Network Studies
Once you have filled in and submitted the Connection Application Form, the DNO will carry out a range of studies to explore the impact of your generating plant on the network and to design your connection. The sorts of studies the DNO will perform typically include: load flow studies, to work out where the power from your generating plant will flow on the distribution network and to check that currents and voltages will stay within equipment ratings and statutory operating limits; contingency analysis, to decide how to configure your connection so that you can continue to generate if there is a failure on one network component (e.g. a fault on a cable circuit); fault level studies, to calculate how much current would flow out of your generating plant in short circuit conditions and to make sure that the system could safely interrupt the higher fault currents on the system once your plant is operational; in some circumstances, transient stability studies may be necessary to determine whether there are going to be specific protection requirements associated with your plant; studies of disturbances such as harmonics and voltage flicker correcting problems such as this could involve the connection of additional equipment and possibly increase connection costs. The number and complexity of studies that have to be undertaken will vary depending on a number of factors, including: the size of your generating plant; the level of security you want for your connection; how complicated the network is around your plant; the existing use of the network around your plant.
Data Requirements
The Common Application Form contains a comprehensive list of data requirements to assist the DNO with carrying out system studies as part of the connection design process. You should do your best to provide as much of this information as possible. If you have difficulty obtaining any of it, or are not sure what a particular data item refers to, you can discuss this with your DNO, who will try to help, or you can engage an adviser such as an engineering consultant to assist you. The supplier of the generating plant may also be able to help.
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Data Requirements
The data requirements in the application form are based on the requirements of the Distribution Data Registration Code, which is part of the Distribution Code. This splits the data requirements from DG into three categories: Standard Planning Data, Detailed Planning Data and Operational Data. In general, Standard Planning Data is requested using the Application Form and you will be advised by the DNO if there is a need to provide further, more detailed data. An important point about providing data to your DNO: Your DNO will need to have a complete set of technical data about your generating units and your proposed connection arrangements before they can carry out the studies necessary to give you a connection quotation. Also, the clock only starts ticking on the period within which the DNO is obliged by its Licence to give you a connection offer once the information to be supplied by you is complete. So give your DNO as much accurate information as possible, as soon as you can!
How quickly must the DNO give me a connection offer? The Standard Conditions of the Electricity Distribution Licence require DNOs to offer terms for connection and use of system as soon as is reasonably practicable after receiving a request. If you have only asked for Use of System, the DNO must provide an offer within 28 days. If you have requested both Connection and Use of System, the DNO must give you an offer within three months. These times only apply once the DNO has all the information from you that it can reasonably ask for.
For more information about the information needed by DNOs at different stages in the connection process, see the Distribution Data Registration Code in the Distribution Code. This is available from www.dcode.org.uk
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Months 2 - 3
Months 4 - 5
Month 6
Month 7
Month 10
You review the DNOs Connection and Use of System offers, noting the elements for Contestable and Non-contestable work, and decide whether to accept the DNOs offer for both parts, or just the Non contestable work.
Months 10-12 You accept the Connection Offer, and appoint an Independent Connections Provider if appropriate. You commence discussions with the DNO about a Connection Agreement, to be negotiated whilst the connection is under construction.
Notes on the timeline: Some of the stages shown in the timeline are optional, for example, consulting the Long Term Development Statement and obtaining advice regarding preliminary connection designs. If you do not undertake these activities, but are happy to lodge a formal connection application after an initial discussion with your DNO, the time to complete this process will be reduced. It is also possible to combine some of the stages of activity, so that for example you begin compiling the information to support your connection application whilst in the early stages of discussions with the DNO. This would reduce the elapsed time in the connection process from what is shown above. If your generation scheme might have an impact on the transmission network, the above timescale could be significantly extended, due to the need to obtain a Statement of Works from NGET regarding any required transmission system modifications. You should discuss the likelihood of a Statement of Works being required with your DNO at an early stage.
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connection costs or timing could be affected by wayleaving and/or planning consent issues, and to itemise the costs included in the quotation for these components ask the DNO to consider alternative routes for cables and/or overhead lines, if this could result in simpler planning and wayleaving processes, and to indicate the different connection costs and timescales that may result for example, cabling along a public highway, whilst being potentially more expensive than an overhead line, may have fewer wayleaving complications than the overhead line option. Similarly, if the DNO can avoid routes with complex rail or motorway crossings then obtaining wayleaves and developing the connection will prove easier and less costly
Where can I find out more about Connection Offers and Interactive Applications? All the DNOs publish documents called their Statement of Methodology and Basis of Charges for Connection (which you may sometimes hear referred to as their Licence Condition 4 Statement from the early DNO licence conditions). This sets out in detail: the way that each DNO handles Connection Applications; how it goes about issuing Connection Offers; and the arrangements it makes for dealing with Interactive Applications. These documents are available from each of the DNOs websites.
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Introduction
Depending on the size of your generating plant, you may need to apply for a Generation Licence. This section of the Guide explains how to determine whether your generating plant requires a licence, and the process for obtaining a licence if you need one. There are a number of issues regarding generation licensing which affect the relationships that you will have with other electricity sector organisations. In particular, if your generating plant exports more than 100 MW, and therefore automatically requires a licence, you will need to talk with Elexon and NGET about the implications of trading electricity in accordance with the Balancing and Settlement Code. This section of the Guide explains more about the relationship between developers of DG and NGET and highlights the different agreements that you could be required to enter into at the transmission level. Full details are provided about the sources of further information that you will need to help you with the licence application process.
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Connection and Use of System Code (CUSC), the Grid Code and the Balancing & Settlement Code. The BEGA gives the generator the right to export onto the GB transmission system and to operate in the energy balancing market. Developers of small and medium power stations have the option to enter into a BEGA if they wish to take part in the wholesale electricity market; the Bilateral Embedded Licence Exemptable Large Power Station Agreement (BELLA) applies to those large power stations that are exempt from holding a generation licence. This agreement is only available to Large Power Stations in Scotland, which could be below the 100 MW threshold at which holding a Generation Licence is mandatory. Generators who hold a BELLA must comply with the CUSC and the Grid Code. They may not operate in the electricity balancing market, however, and are not therefore required to comply with the Balancing and Settlement Code (BSC).
What is a Large Power Station? The definition of a large generating plant varies between England & Wales and Scotland, due to the different transmission voltage levels and system characteristics in these regions. The Grid Code definitions of Large Power Stations are as follows: In the National Grid Electricity Transmission system, plants with a registered capacity 100 MW In the SP Transmission system, plants with a registered capacity 30 MW In the Scottish Hydroelectric Transmission system, plants with a registered capacity 10 MW Where can I find out about NGET Transmission Charges? Full details of NGETs Transmission Network Use of System Charges are available from: http://www.nationalgrid.com/uk/Electricity/Charges/chargingstatementsapproval
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Introduction
There are two categories of charges made by the DNO: Connection charge: this is a one-off charge made by the DNO, which primarily covers the cost of work and equipment associated with connecting your generating scheme to the distribution network. Use of System charges: these are ongoing charges, which primarily cover the cost of reinforcement and operation and maintenance costs. This section focuses on connection costs. Information on Use of System and other charges can be found in the Section E. Costs and Charges: Ongoing Costs. DNOs are obliged to publish documents describing the basis of their connection charges and their charging methodology. They also present the different elements of connection charges, and indicative costs for works and equipment of significant cost. This will help you to understand the charges they quote you. This information is contained in the DNOs Statement of Methodology and Charges for Connection to the electricity distribution system. All DNOs statements follow the same format, and are available on their websites. This document contains: The DNOs connection charging methodology (i.e. how they calculate their charges); The DNOs connection charging statement (i.e. what the charges are); An indication of the costs of providing a connection quotation / estimate; and Other relevant information for connecting customers. The basis and elements of connection charges, as well as indicative costs and examples are discussed in this section.
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Connection ChargesInfrastructure
Basis of DNO connection charges Depending on the location and size of your generating plant the DNO may have to: Modify an existing part of the network to accommodate your scheme; or Provide an entirely new connection. This will result in some initial costs, which will be charged to you upfront as part of the connection charge. Components of these initial asset costs are discussed further. Extension costs and reinforcement costs The connection provides an electrical path between your generation installation and the DNOs network. The work required to provide this path can be broken down into two categories: 1. New infrastructure (or extension) must be installed to provide an extension of the existing network. This is from the point of connection on the existing network up to the new point of supply. 2. Some reinforcement of the existing network infrastructure may be required to accommodate your planned generation capacity. These are illustrated in the figure below and the point of connection is defined in the Glossary. Reinforcement work is usually required to increase the electrical capacity of those parts of the network which form part of the electrical path from the generating plant to the network. However, some reinforcement work does not fit this description, for example: It may be necessary to install switchgear at a substation some distance from your scheme. This could be due to the increase in fault level caused by the connection of your generating plant, or to create a new protection zone. Equipment such as reactors or static VAR compensators may be needed for times when the voltage may rise, e.g. when your generating plant is exporting at times of light demand. The asset costs that you are charged for include: Any extension to the network A portion of reinforcement costs
DNO Network
DNO Network
New Infrastructure
Reinforcement
Point of supply
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Connection ChargesInfrastructure
DNOs are obliged to publish a document describing the basis of their connection charges and their charging methodology. You can refer to this document to see what portion of reinforcement costs you will be charged for. These are available on DNO websites.
Assessment and Design fees: At the time of writing DNOs cannot make an up-front charge for provision of a formal quotation for a new connection under Section 16 of the Electricity Act. However they may require the payment of up-front charges for budget estimates, feasibility studies and other enquiries. DECC are working with Ofgem to create a framework that would allow DNOs to charge up-front fees in the case of formal quotations, however the timeframe for this is still unclear. What is fault level? How does DG affect fault level? Fault level is a measure of the current which would occur in the event of a solid 3-phase short circuit at a certain point on a distribution (or transmission) network. Fault level is normally expressed in thousands of Amps (kA) or the equivalent apparent power (MVA). It is not very useful to give a single value because fault levels can change over time. This can be due to changes in the network configuration to allow routine maintenance or isolate faults. Maximum and minimum values are usually specified for the fault level which may occur in the DNO network at a certain point. The rating of existing circuit breakers and circuits place an upper limit on the range of fault levels that can be permitted in a particular part of the network. Your generating plant can contribute to fault current, so it increases the fault level on the network. If connecting your generating plant increases the fault level above the capability of the DNO equipment, you may have to contribute to reinforcements.
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What is a budget estimate? You may read about budget or indicative estimates and formal or firm quotations. The differences between these two terms are summarised in the following table.
Budget or Indicative estimate Requested in the early stage of a project, and generally only for larger capital schemes The DNO doesnt require much information from you Based on a desktop studythe DNO is unlikely to carry out detailed designs or studies Firm or formal quotation Requested when electrical requirements have been finalised The DNO requires a lot of information from you Based on detailed design work, and may require other input such as site surveys
To give an indication of costs and is therefore Provides formal contract offer subject to changesome risk involved using this for budgeting your project Not open for acceptance Open to acceptance, subject to terms and conditions
The DG performance standard, introduced by the DG standards directive, defines time periods within which DNOs should respond to a request for a budget estimate. This applies to Section 16 Applications (i.e. if you are applying to the DNO to undertake both the Contestable and Non-contestable elements of the connection work). The timescales for the DNO to provide a budget estimate are: 10 working days for connections of less than 1 MVA; and 20 working days for connections of 1 MVA or more.
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project and have discussions with them. Part of these discussions will include the need for studies and the possibility of reinforcement charges. Statement of Works If you want to connect the following generating plants the DNO will need to submit a request to NGET for a Statement of Works: A medium power station that is exempt from holding a generation licence, and does not intend to have a bilateral
Exemptible generation: Exemptible generation is generating plant for which the generator is not obliged to hold a generation licence under the terms of Statutory Instrument 2001 No. 3270, The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001. Generation licence exemptions are discussed in Section D. The Connection Application: Generation Licensing.
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< 10 MW
10 MW
Financial liabilities associated with Transmission Works: The DNO may be required to secure financial sums payable to NGET for transmission works that would not be required if your generation project does not proceed (final sums liabilities). The DNO would pass these liabilities on to you as the project developer. Under NGETs new scheme for connecting generation, the Connect and Manage scheme, the way in which these liabilities are shared between network users changes slightly. You should discuss this issue with your DNO.
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Introduction
There are two categories of charges made by the DNO: Connection charge: this is a one-off charge made by the DNO, which primarily covers the costs of work and equipment associated with connecting your generating scheme to the distribution network. This includes a portion of reinforcement costs. Use of System charges: these are ongoing charges, which primarily cover operation and maintenance costs and include a portion of reinforcement costs. This section discusses Use of System charges, as well as other ongoing charges that may apply to you. Ongoing charges are associated with some of the running costs of your generating plant. Depending on the nature of your scheme these can include: Generation Distribution Use of System (UoS) charges Metering charges Top-up and standby charges Charges for the use of the NGET transmission system We will discuss these charges in more detail. Use of System charges are levied by the DNO to the supplier, so as a generator you will not be charged these directly. However, this section is included for your information, as Use of System charges may appear as an item on your bill.
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(EDCM) will replace DNOs individual EHV charging methodologies from April 2011. DNOs are obliged to publish documents about their UoS charges. These cover their UoS charging methodology and a statement of what the chares are for both generation and demand customers. You can find these on DNOs websites. You can find out more about the Common Distribution Charging Methodology (CDCM) by looking at Distribution Charging on the Ofgem website, Structure of Charges on the Energy Networks Association website and DNOs websites.
What is the difference between Half Hourly (HH) meters and Non-Half Hourly (NHH) meters? Meters record the flow of electricity. There are two main categories of meters; Half Hourly (HH) and Non-Half Hourly (NHH). HH meters are for larger customers; if your generation peak power is greater than 30 kW you have to use a HH meter. NHH meters record total power consumption, but do not record the times the power is consumed. Typically the recorded data would be collected a few times a year, e.g. every quarter. In contrast, HH meters measure and record power consumption for each half hour period. The data they record is typically collected remotely every day, for example by a telephone line. Recorded data from meters is used to determine charges and rewards. For example, to calculate: Imbalance charges for balancing and settlement Distribution or Transmission UoS charges Renewables Obligations Certificate rewards
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cover the load associated with auxiliary plant during start-up. Top-up and standby supplies can be purchased from any electricity supplier, other DG, or directly through market mechanisms such as the UK Power Exchange or the Balancing Mechanism.
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Introduction
In April 2010 the Government introduced a new financial incentive to support small-scale renewable energy generators. The scheme is called a Feed-in Tariff (FIT). The existing Renewables Obligation (RO) encourages renewable generation as part of the wider electricity market, but it is a complex scheme more suitable for professionals in the energy sector. The Feed-in Tariff (FIT) targets distributed and small-scale renewable energy generation for installations of up to 5 MW. Since the introduction of the scheme, the following arrangements have been in place: Renewable Energy (RE) generation < 50 kW : hydro, solar PV, wind and anaerobic digestion projects were automatically transferred from Renewables Obligation Certificates (ROCs) to FITs. Between 50 kW and 5 MW: existing projects remained in the Renewables Obligation and new projects have a oneoff choice between FITs and ROCs. Above 5 MW: All projects remain in the Renewables Obligation. The FITs structure should provide the right level of simplicity and certainty to encourage non-energy professionals to invest in smallscale generation. FITs are available for the following generation technologies: Anaerobic digestion Hydro Solar PV Wind A number of domestic Combined Heat and Power (CHP) plants are also supported through FITs under a Micro CHP pilot scheme. The tariff structure should give you an incentive to consume the electricity you generate and become more energy efficient.
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Tariff Structure
The tariff structure provides three strands of benefits from FITs if you use your electricity on site: Generation tariff: A fixed price for each unit of electricity generated - this price will remain constant throughout the lifetime of the installations eligibility for FITs payments (See below for generation tariffs). Export tariff: A guaranteed price for each unit of electricity exported to the grid. Benefits from reducing your import from the grid by using your own electricity and the resulting decrease in your bill.
Generation tariff for Generation installations registered in tariff for FIT Year 1 installations (p/kWh) registered in FIT Year 2 Year 1
(1/4/2010 31/3/2011)
Year 2
(1/4/2011 31/3/2012)
Year 2
(1/4/2011 31/3/2012)
Anaerobic digestion 500 kW (see page 65) Anaerobic digestion > 500 kW Hydro 15 kW Hydro > 15 kW but 100 kW Hydro > 100 kW but 2 MW Hydro > 2 MW but 5 MW Micro CHP 2 kW (see note on page 66) PV 4 kW new build PV 4 kW retrofit PV > 4 kW but 10 kW PV > 10 kW but 100 kW (see page 65) PV > 100 kW but 5 MW (see page 65) PV Stand alone system (see page 65) Wind 1.5 kW Wind > 1.5 kW but 15 kW Wind > 15 kW but 100 kW Wind > 100 kW but 500 kW Wind > 500 kW but 1.5 MW Wind > 1.5 MW but 5 MW Existing microgenerators transferred from RO
11.5 9.0 19.9 17.8 11.0 4.5 10.0 36.1 41.3 36.1 31.4 29.3 29.3 34.5 26.7 24.1 18.8 9.4 4.5 9.0
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12.1 9.4 20.9 18.7 11.5 4.7 10.5 37.8 43.3 37.8 32.9 30.7 30.7 36.2 28.0 25.3 19.7 9.9 4.7 9.4
12.1 9.4 20.9 18.7 11.5 4.7 10.5 37.8 43.3 37.8 32.9 30.7 30.7 36.2 28.0 25.3 19.7 9.9 4.7 9.4
20 20 20 20 20 20 10 25 25 25 25 25 25 20 20 20 20 20 20 To 2027
Tariff Structure
Tariffs are linked to the Retail Price Index (RPI) and they are adjusted annually for inflation. The tariffs in Year 2 (01/04/2011 31/03/2012) have been adjusted by the 2010 RPI of 4.8%. This applies to both: the generation tariffs, which are shown in the table on the previous page; and the export tariff, which has increased from 3p/kWh in Year 1 (2010/11) to 3.1p/kWh in Year 2 (2011/12). You will receive generation tariffs (FITs) for a fixed number of years and a guaranteed export price. The export price is 3.1p/kWh during Year 2 of the scheme (2011/2012) and generation tariffs vary according to the generation technology and size of your plant. You will also have the option to negotiate export tariffs on an open market. The generation tariffs were designed to allow you to achieve an annual rate of return between 5 and 8%. They are summarised in the table on the previous page. After the first two years of the scheme, the generation tariffs degress each year. Degression is the percentage by which the levels will decrease each year for new projects. The generation tariff you are eligible for at the start of your project will last the lifetime of your scheme (adjusted annually for inflation). The Government will review the generation tariffs regularly to account for cost reduction and enlarged scale of production. The degression in generation tariffs will only affect new installations, and you will keep whichever FIT you had at the time of full accreditation. FITsAn example The following example illustrates the possible benefits that you could achieve by accessing FITs. The numbers used in this example are indicative.
On site RE Generation: 2500kWh Demand: 4500kWh
Export: 1000kWh
Import: 3000kWh
In the example: Assuming an import tariff of 10p/kWh Without on-site generation: You will pay 4500 kWh x 10p/kWh = 450 per year With a 1 kW Bergey wind turbine: You will pay 3000 kWh x 10p/kWh = 300 for the electricity imported from the grid; (import tariff: 10p/kWh); You will save 1500 kWh x 10p/kWh = 150 on the electricity you generate and use on-site (import tariff: 10p/kWh); You will earn 2500 kWh x 36.2p/kWh = 905 for all the electricity you generate on site (FIT for wind turbine < 1.5kW of 36.2kWh); and You will earn 1000 kWh x 3.1p/kWh = 31 for the electricity you export to the grid (export tariff of 3.1p/kWh). In a year you will make 636. Your net benefit, relative to the scenario without onsite generation, will be 1,086.
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For anaerobic digestion plants, all plant between 50 kW and 5 MW and as a transitional arrangement for micro hydro (see note on next page) the following process (ROO-FIT) applies: 1. Install your generating unit; 2. Apply for accreditation through Ofgems Renewable and CHP register (see Section F. Selling Electricity Renewables Obligation Certificates Accreditation); 3. Successful applicants will be awarded an accreditation number; 4. Register for a FIT with your supplier, and provide them with your accreditation number so that they can verify your eligibility. Steps 5 and 6 are as above. While Ofgem is responsible for establishing and maintaining the central FITs register, suppliers manage the registration process they will be your point of contact.
What is the Microgeneration Certification Scheme (MCS)? The MCS is currently the only formalised industry standard in the UK based on European and international standards for microgeneration projects. MCS is a BS EN 45011 Certification scheme covering Renewable Energy products (wind and PV up to 50 kW (electrical), solar thermal, biomass and heat pumps up to 45 kW (thermal), Micro CHP and hydropower) and Renewable Energy installation companies. MCS checks for the products performance and quality and for the installation methods and quality. MCS will enhance your confidence in the Renewable Energy technology you are buying and in the company installing it. The MCS is linked with FITs accreditation for Renewable Energy generation < 50 kW electrical capacity. For more information please refer to the MCS website: www.microgenerationcertification.org
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The FIT generation tariff for Anaerobic Digestion installations 500 kW will be increased to: 14.0p/kWh for 250 kW
13.0p/kWh in the range > 250 kW but 500 kW
These tariff changes are due to be implemented from 1st August 2011. The changes will not affect any installations that are already registered on the FIT accreditation register. For the most up to date information on the FIT review, see DECCs webpage on Feed-in Tariffs.
Accreditation arrangements for Anaerobic Digestion and Hydro: Anaerobic Digestion installations of any size are to be accredited by the Renewables Obligation (RO) Order Feed-in Tariff (ROO-FIT) process, rather than the MCS accreditation process (MCS-FIT). The ROO-FIT accreditation process is run by Ofgem (rather than the generation installer / supplier), via Ofgems Renewable and CHP register. There is more information about it on Ofgems website: http://www.ofgem.gov.uk/Sustainability/Environment/fits/Apply/Pages/Apply.aspx The Feed-in Tariff (Specified Maximum Capacity and Functions) (Amendment) Order 2011 introduces some modifications to the FITs Order 2010. This is to reflect clarifications and refinements to the FITs Order 2010 now that the FITs scheme has been running for some time. The Amendment Order includes a transitional arrangement for Hydro generating schemes that are less than 50 kW (micro hydro). If they are commissioned between 1st April 2010 and 1st October 2011 then they can be accredited by the Renewables Obligation mechanism for accreditation (ROO-FIT), rather than MCS accreditation (MCS-FIT). Any micro hydro commissioned after 1st October 2011 must be accredited via the MCS.
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Technical Considerations
You will need to measure three electrical flows to get the most out of the FIT scheme: The amount of electricity your Renewable Energy plant is producing the basis of your generation financial stream The amount of electricity you export to the network - the basis of your export financial stream The amount of electricity you import from the networkthe basis of your supplier electricity bill. If you have two types of RE generation, you will need to measure the amount of electricity produced by each of the plants separately, as each technology will receive its own generation tariff. For your generation financial stream, your generating units must be metered. For your export payments, there are currently two options: 1. The Government is allowing an interim measure of estimating export, subject to conditions. For example, the Energy Savings Trust website states that domestic FIT installations are likely to have an estimated export level of 50% of electricity generated. 2. Alternatively you could record your export to the network with a meter (called an export meter). Smart meters will have the capability to record generation and export. Your electricity supplier is a good first port of call to discuss metering arrangements.
Micro CHP Pilot: The Micro CHP pilot will support up to 30,000 installations with a review to start when the 12,000th installation has occurred. To qualify the CHP unit must have an electrical capacity no greater than 2 kW.
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Introduction
The UK Government aims to increase the contribution of Renewable Energy (RE) to the national energy supply. Since 2002, the Government has been introducing renewable electricity incentives to boost the penetration of renewable electricity into the market. This section of the Guide focuses on the Renewables Obligation and the Renewables Obligation (Scotland), relevant to Renewable Energy generators whose plant: has a declared net capacity that exceeds 50 kW; or has a declared net capacity less than 50 kW (microgeneration) but is not eligible for FITs due to the type of generation technology. The Renewables Obligation Orders place an obligation on licensed electricity suppliers in England, Wales and Scotland to source an increasing proportion of electricity from renewable sources. In 2011-12 electricity suppliers will have to present 0.124 Renewables Obligation Certificates (ROCs) per MWh of electricity sold. For more on ROCs see the box on the next page. There are various other power trading options for Distributed Generation, including: Selling your electricity on the wholesale market or to an electricity supplier Levy Exemption Certificates (LECs) Embedded benefits Ancillary services EU Emissions Trading System (ETS) These have been discussed briefly in Section B. The Role of Distributed Generation: Benefits of Distributed Generation, which also points to further reading on these topics. Beyond that, they are outside of the scope of this Guide.
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What is a Renewables Obligation Certificate (ROC)? A Renewables Obligation Certificate (ROC) is a green certificate issued to an accredited generator for eligible renewable electricity generated within the UK and supplied to customers within the UK by a licensed electricity supplier. The number of ROCs issued for each megawatt hour (MWh) of eligible renewable output generated depends on the generating technology. This is called banding, and is shown in the table on the next page.
What is headroom? Headroom works by providing a set margin between predicted Renewable Energy generation (predicted volume of ROCs) and the level of the Obligation (demand for ROCs, linked with the level of sales of each supplier). It helps to reduce the likelihood that generation will exceed the Obligation in any given year, the result of which would be a crash in ROC value.
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Revenue Considerations
If you are eligible to receive ROCs you will have two main financial streams: The product of the electricity you produce and sell either directly to a supplier (via a Power Purchase Agreement) or to the open electricity market The price of your ROCs you sell either directly to electricity suppliers or to an open market. Projects accredited after 26 June 2008 will receive this financial support for a 20-year period, up to the end date of the Renewables Obligation mechanism, which is 2037.
ROCs banding: Generation type Tidal Geothermal PV (Photovoltaic) Microgeneration ( 50 kW) Dedicated energy crops or biomass with CHP Anaerobic digestion Advanced pyrolysis or gasification Wave Off-shore wind Co-firing of energy crops with CHP Dedicated Biomass Standard pyrolysis or gasification Geopressure Co-firing of Biomass or energy crops with CHP Energy from waste with CHP Hydro-electric On-shore wind Co-firing of energy crops Co-firing of biomass Electricity from sewage gas Electricity from landfill gas
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Number of ROCs per MWh generated 2 5 2 2 2 2 2 2 2 3 1.52 1.5 1.5 1 1 1 1 1 1 1 0.5 0.5 0.25
Revenue Considerations
Additional capacity to your existing plant will benefit from 20 years of support from the date you were first accredited up to the 2037 end date of the scheme. The Government is considering the support period for refurbished and replaced Renewable Energy plants. The number of ROCs you will receive per MWh generated depends on the technology and the accreditation date of the plant. The Government will review the ROC bands regularly, to target the subsidies to the less established technologies. However, based on the grandfathering rule, you will keep whichever ROC banding you had at the time you got your full accreditation. The banding is shown in the table on the previous page. A first review of ROC banding has started, but changes are not due to be implemented until April 2013. Note: Grandfathering is a principle where support levels are guaranteed for projects for their lifetime in a scheme, regardless of future reviews or changes, to provide certainty for investors.
4.
5.
Note: Generators whose plant has a declared net capacity of 50 kW or less can nominate an agent to deal with the administration (completing the application for accreditation, submitting data and signing declarations on your behalf). Agents can also claim ROCs on your behalf.
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Transitional Arrangements
The Government has recently changed the legislation on Renewable Energy incentives. But it will respect the rule of grandfathering, assuring the level and conditions of incentives you receive remain constant. Summary of transitional arrangements: Capacity <50kW and eligible for FITs 50kW - 5MW and eligible for FITs > 5MW or < 5MW but ineligible for FITs due to generating technology Remain in the Renewables Obligation Remain in the Renewables Obligation Remain in the Renewables Obligation The table below summarises the transitional arrangements and how you will be affected depending on when your installation is complete.
Installations fully accredited under the Renewables Obligation before 15/07/2009 Installations completed between 15/07/2009 and 31/03/2010 Installations completed after 01/04/2010
Automatic transfer to FITs FITs from the introduction of the scheme FITs
Remain in the Renewables Obligation One-off Choice between FITs and ROCs One-off Choice between FITs and ROCs
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Introduction
In getting a connection, you have two options: 1. Ask the DNO to undertake all the work necessary to provide the connection 2. Contract an Independent Connections Provider (ICP) to provide and install certain aspects of the connection infrastructure If you contract an ICP you will need the DNO to agree to adopt the infrastructure. With a DNO connection you will have a contractual relationship with the DNO; with the ICP option you will have a contractual relationship with the ICP. The ICP option: results in an additional relationship between the ICP and DNO; and Gives you access to a wider range of potential contractors, which could potentially result in lower costs and may give you greater control over construction timescales. You should weigh the potential benefits against the time and effort involved in managing this additional relationship.
ICP Connection
Noncontestable work, e.g. Activities related to the existing network DNO ICP Contestable work, e.g. Activities related to new assets* You (developer)
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Contractual relationship
*Where the DNO agrees that these are Contestable activities
DNO
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Introduction
Before you can start operating your generating plant, you may need to enter into a number of agreements with the DNO, including: A Connection Agreement An Adoption Agreement, where you have contracted an Independent Connections Provider (ICP) The terms are defined briefly in the box on the next page. These contractual relationships will be discussed in this section. The Adoption Agreement can take one of several forms (e.g. bipartite, tripartite). This is discussed further on the next page.
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Agreements at a glance Connection offer: A formal offer from the DNO containing terms, conditions and charges for the DNO to make the connection. This could be issued either to you or the Independent Connections Provider (ICP) where applicable. Connection Agreement: An agreement between you and the DNO detailing terms and conditions for becoming and remaining connected to the DNOs network. Adoption Agreement: If you have contracted an Independent Connections Provider (ICP), you will need to enter into this agreement. There are several forms this agreement can takeconsult your DNOs Connection Charging Methodology to find out which form your DNO specifies. The Adoption Agreement sets out the terms and conditions for the DNO to adopt assets which have been constructed by an ICP.
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Introduction
Although the focus of this Guide is on the connection process for DG, we will also touch on some operational issues. Once your generating plant has been connected, you still have some ongoing responsibilities around running your plant. These are outlined in a section of the Distribution Code, which is discussed in more detail in this section. For example, you may need to provide the DNO with forecasts of your generating plants output, or exchange information with them if an unusual event occurs. There are different requirements for different categories of DG. The day-to-day running of your generating plant may also be impacted by control schemes which your DNO may apply. If your DNO does apply an operational control scheme this will be detailed in your Connection Agreement, so that is the first place you should look. These schemes are only discussed briefly, so we will point you in the direction of reports which you can refer to for more background information.
DOC2
DOC5
Medium DG that doesnt have an embedded generation agreement DOC6 DOC7 Not applicable to DG DG connected at HV
DOC8
DOC9
DOC10
DG connected at HV
DOC11
DOC12
DG connected at HV
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Glossary of Terms
Adoption Agreement: An agreement between a developer of Distributed Generation (DG) and a Distribution Network Operator (DNO) and / or an Independent Connections Provider (ICP) concerning the transfer into DNO ownership of infrastructure supplied and installed by an Independent Connections Provider (ICP). Ancillary Services: Services such as the provision of reactive power support and black start capability by a Generator to NGET as part of an Ancillary Services Agreement with NGET. Auxiliary Plant: Any item of plant and/or apparatus not directly a part of the boiler plant or Generating Unit, but required for the boiler plant's or Generating Unit's functional operation. Balancing and Settlement Code (BSC): The Code which determines the rules governing the Balancing Mechanism and settlement process for electricity trading in Great Britain. A BSC Panel has been charged with overseeing the management, modification and implementation of the BSC rules, as specified in Section B of the BSC. The Balancing and Settlement Code Company (ELEXON) supports the BSC Panel. Balancing Mechanism: The National Electricity Transmission System Operator (NETSO) has a licence obligation to manage the Transmission System and, in so doing, may anticipate that more energy will be generated than consumed, or vice versa. Unchecked, this would result in system frequency falling or rising to an unacceptable degree. The balancing mechanism provides a means by which NETSO can buy or sell additional energy close to real-time to maintain energy balance, and also to deal with other operational constraints of the Transmission System. Capacity: See Registered Capacity. Central Dispatch: The process of scheduling and issuing direct instruction for despatch of available generation sets and interconnector transfers by the Transmission System Operator under the conditions of the transmission licence. Connection Agreement: An agreement setting covering the conditions under which your generating plant is allowed to be physically connected to the DNO network and remain connected and energised while the network is operating normally. Contestable: That part of the connection works which is open to competition. Climate Change Levy (CCL): Part of a range of taxation measures designed to help the UK meet its legally binding commitment to reduce greenhouse gas emissions. This levy / tax is chargeable on the industrial and commercial supply of taxable commodities for lighting, heating and power by consumers in the following sectors of business: industry, commerce, agriculture, public administration and other services. Connection and Use of System Code (CUSC): Contractual framework for connection to and use of the National Electricity Transmission System. Declared Net Capacity (DNC): The maximum power available for export on a continuous basis minus any power imported by the station from the network to run its own plant. Distribution Code: The code required to be prepared by a DNO pursuant to condition 21 (Distribution Code) of a Distribution Licence and approved by the Authority (The Gas and Electricity Markets Authority Ofgem) as revised from time to time with the approval of, or by the direction of, the Authority.
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Glossary of Terms
Distributed Generation (DG): A generating unit which is connected to a distribution network rather than to the transmission system. Distributed Generation is generally smaller than plant connected to the transmission system as the maximum operating voltage of distribution networks is 132 kV in England and Wales and 33 kV in Scotland. Distribution Network (System): The distribution system is the network that comprises the equipment between the transmission system and the customers service switch. In England and Wales the distribution systems are the lines with a voltage less than or equal to 132 kV. In Scotland the distribution network is composed of lines less than 132 kV. Distribution Network Operator (DNO): A holder of a Distribution Licence, the DNO owns, operates and maintains a Distribution network and is responsible for confirming requirements for the connection of Distributed Generation to that network. Embedded Generation: Another term used for Distributed Generation (DG). See above. Embedded Benefits: If a generating unit is considered to be embedded in the distribution network, it will be viewed as reducing the demand for power from the transmission system and the resulting losses. Suppliers can see their charges for use of the distribution system reduced as a result. Generators can, in some instances, negotiate to be paid a percentage of this benefit. Energy Service Company (ESCO): A Government paper defines ESCOs as a company that provides a customer with energy solutions rather than simply being an electricity or gas supplier. EU Emissions Trading System (ETS): Formerly referred to as the EU Emissions Trading Scheme, the EU Emissions Trading System (EU ETS) is one of the key policies introduced by the European Union to help meet its greenhouse gas emissions reduction target. It is a Europe-wide cap and trade scheme that started in 2005. The EU ETS covers electricity generation and the main energy-intensive industries. Exemption Order (Generation License): Certain generation plants that are not obliged to hold a generation licence under the terms of Statutory Instrument 2001 No. 3270, The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001. Extra High Voltage (EHV): This term is not defined in the Distribution Code, which only defines High Voltage (HV) and Low Voltage (LV). In general EHV covers connection to the distribution network at or above 22kV, or at a primary substation at or above a certain voltage level. In practice this means 33 or 66kV, or 132 kV (England and Wales only). Refer to your DNOs definition. Extension: It is sometimes necessary to extend the DNOs distribution network in order to provide a connection for a new user (demand or generation customer). Fault Level: Prospective current that would flow into a short circuit at a stated point in the system. Generation Licence: A licence granted or to be granted under section 6(1)(a) of the Act - Statutory Instrument 2008 No. 2376. This licence is obtained from Ofgem. Generating Plant: A power station including any generating unit. Generating Unit: Any apparatus which produces electricity. Is a synonym of a generation set as defined in the Distribution Code.
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Glossary of Terms
Generator: A person who generates electricity under licence or exemption under the Electricity Act 1989. Grid Code: The code which the GB System Operator (NGET) is required to prepare under its Transmission Licence and have approved by the Authority (Ofgem) as from time to time revised with the approval of, or by the direction of, the Authority. Grid Supply Point (GSP): Any point at which electricity is delivered from the National Electricity Transmission System to the DNOs Distribution system. Harmonics: A component of a periodic wave with a frequency that is a multiple of the frequency of the original wave. High Voltage (HV): A voltage exceeding 1000 V AC or 1500 V DC between conductors, or 600 V AC or 900 V DC between conductors and earth. In general DNOs consider that HV are voltages in the range of 1 kV to 22 kV. Independent Connections Provider (ICP): Companies that have been thoroughly assessed and granted the necessary accreditation to provide new connections in competition with the DNOs. Independent Distribution Network Operator (IDNO): A holder of a distribution licence, an IDNO designs, builds, owns and operates a distribution network, which is an extension to existing DNO network. They typically build network for new developments such as business parks, retail and residential areas and leisure facilities. Interface Protection: The electrical protection required to ensure that the generation is disconnected for any event that could impair the integrity or degrade the safety of the Distribution Network. Large Power Station: A power station which is connected to a system in: NGETs Transmission Area with a Registered Capacity of 100 MW or more; SP Transmission Limiteds Transmission Area with a Registered Capacity of 30MW or more; or Scottish Hydro-Electric Transmission Limiteds Transmission Area with a Registered Capacity of 10MW or more. Levy Exemption Certificates (LECs): These exemptions favour energy efficient technologies or sustainable power plants; good quality Combined Heat and Power (CHP) and renewable electricity could be granted, under certain conditions, Levy Exemption Certificates (LECs) for each kWh of electricity generated and the LECs could be used to obtain Climate Change Levy (CCL) Exemption, and therefore avoid paying the CCL tax applied on energy supplied to industrial and business users. Directly related to the Climate Change Levy (CCL) as some supplies are excluded or exempt from the levy while others have a reduced or halfrate. Low Voltage (LV): A voltage normally exceeding 50 V AC between conductors and earth or 120 V DC between conductors but not exceeding 1000 V AC or 1500 V DC between conductors or 600 V AC or 900 V DC between conductors and earth. Medium Power Station: A power station with a registered capacity of 50 MW or more but less than 100 MW in England and Wales (by definition, there are no medium power stations in Scotland). National Electricity Transmission System Operator (NETSO): Operates the electricity transmission system in England, Wales and Scotland (see System Operator).
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Glossary of Terms
National Grid Electricity Transmission (NGET): Owns the electricity transmission network in England and Wales, and operates the transmission system in England, Wales and Scotland (takes the role of the NETSO). NGET is a member of the National Grid group of companies. Ofgem: The Office of Gas and Electricity Markets. Point of Connection: The point at which the network Extension is to be connected to the Distribution System. Protection Settings: The provisions for detecting abnormal conditions in a System and initiating fault clearance or actuating signals or indications. Registered Capacity: The normal full load capacity of a generation set as declared by the generator less the MW consumed when producing the same. For a customer with own generation this will relate to the level of output he expects to export to the DNOs Distribution System. Registered Data: Data referred to in the schedules to the Distribution Data Registration Code. Reinforcement: Reinforcement work is usually required to increase the electrical capacity of those parts of the network which are affected by the introduction of new generation or demand. Other work might include upgrading the switchgear at a substation some distance from the proposed generation scheme, due to the increase in fault level caused by the connection of a generating plant. Renewable Obligation Certificates (ROCs): A green certificate issued to an accredited generator for eligible renewable energy generated within the UK and supplied to customers within the UK by a licensed electricity supplier. ROCs are issued for each MWh of eligible renewable output generated, the amount of ROCs received depend on the technology of the generating station. Retail Price Index (RPI): General purpose measure of inflation used in the UK. Reverse Power Flows: Power flows in the opposite direction to those associated with the consumption of electricity by users. Site Responsibility Schedule: A schedule defining the ownership, operation and maintenance responsibility of Plant and Apparatus at the Connection Point of the DNO. Small Power Station: A power station, typically connected to a distribution system, which is connected to a system in: NGETs Transmission Area with a Registered Capacity of less than 50MW; SP Transmission Limiteds Transmission Area with a Registered Capacity of less than 30MW; Scottish Hydro-Electric Transmission Limiteds Transmission Area with a Registered Capacity of less than 10 MW. Small Scale Embedded Generation (SSEG): A source of electrical energy and all associated interface equipment, rated up to and including 16 A per phase, single or multi phase 230/400 V AC and designed to operate in parallel with a public low voltage distribution network. Supplier (Electricity Supplier): Electricity suppliers purchase electricity (on the market or in contracts) and sell electricity to customers (commercial, industrial and domestic).
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Glossary of Terms
System Operator (SO): The operator of the transmission networks, the System Operator balances supply with demand on a minute by minute basis. System Voltage: The voltage at which an electrical network is operated. Thermal Rating: The current-carrying capacity of a cable, an overhead line or any other item of electrical infrastructure, which is determined by the heating effect arising from electrical losses. Transmission System (Network): A system of lines and plant owned by the holder of a Transmission Licence and operated by the GB SO, which interconnects Power Stations and substations. In England and Wales the transmission system is the equipment principally rated above 132 kV while in Scotland they are those principally at or above 132 kV. UK Power Exchange: Market and clearing services for the UK Wholesale Power Market are provided by NASDAQ OMX Commodities (NOMXC) and Nord Pool Spot AS (NPS), which operates under the name N2EX. N2, the UK market offering, will initially be a marketplace for Physical UK Power contracts and launch a platform for financial futures contracts further into 2009: a physical market and a futures market. From the outset N2 will operate as a physical power exchange providing platforms for the trading of UK Power contracts. This can be divided into three product areas: the Spot Market, the Prompt Market and the Day Ahead Auction Market (DAM). Use of System (UoS): The use of a transmission or distribution system by a generator, supplier, customer or an interconnected party for the purposes of transporting electricity. Voltage Flicker: Voltage flicker is a deviation in system voltage, where power is not completely lost. Flicker may be defined as the sensation experienced by the human eye when illumination levels change as a result of the change in voltage. Voltage Fluctuation: Fluctuations in the supply voltage that can be caused by a fluctuating load, and which in turn cause flicker. Voltage Unbalance: Occurs where there exists a difference in voltage magnitude between phases and/or a shift in the phase separation from 120 (for a three-phase system).
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References
Standards and other documents: Balancing and Settlement Code (BSC) is available free of charge on Elexons website Connection and Use of System Code (CUSC) is available free of charge on NGETs website Distribution Code of Great Britainavailable free of charge on the Distribution Code website Engineering Recommendation G83/1-1: Recommendations for the Connection of Small-scale Embedded Generators (Up to 16 A per Phase) in Parallel with Public Low-Voltage Distribution Networksa technical document, with references to other relevant sources of detailed technical information. Some appendices are available free of charge. Engineering Recommendation G59/2, relating to the connection of generating plant to the distribution systems of licensed Distribution Network Operatorsavailable to buy on the Energy Networks Association website. Engineering Recommendation G81 is called Framework for design and planning, materials specification, installation and records low voltage housing development installations and associated new HV/LV distribution substations. It can be found free of charge on the Energy Network Associations website. Electricity Safety, Quality and Continuity Regulations (ESQCR) 2002, Section 22: Statutory Instrument Number 2665, available free of charge. Grid Code of Great Britain available free of charge on NGETs website. IEE Wiring Regulations (British Standard 7671) are available to buy on the IET website. Metering Codes of Practice Statutory Instrument 2001 No. 3270, The Electricity (Class Exemptions from the Requirement for a Licence) Order 2001 Statutory Instrument 2008 No. 2376, The Electricity (Applications for Licences, Modifications of an Area and Extensions and Restrictions of Licences) Regulations 2008
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References
Useful websites: Association of Electricity Producers Association of Meter Operators British Hydropower Association Renewable UK Carbon Trust Combined Heat and Power Association Department for Energy and Climate Change Distribution Connection and Use of System Agreement (DCUSA) website Electricity Networks Strategy Group Elexon Energy Networks Association Energy Saving Trust Lloyds Register Microgeneration Certification Scheme National Grid Electricity Transmission (NGET) Ofgem Renewable Energy Association www.aepuk.com www.meteroperators.org.uk www.british-hydro.org www.bwea.com http://www.carbontrust.co.uk/emerging-technologies/technologydirectory/pages/default.aspx www.chpa.co.uk www.decc.gov.uk www.dcusa.co.uk
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References
Relevant reports and guides: A Guide: Sale of Power Opportunities for Distributed Generators; DTI (Department for Trade and Industry); Electricity Networks Strategy Group website Electricity Trading Arrangements: A Beginners Guide; Elexon Future Network Architectures; BERR (Department for Business, Enterprise and Regulatory Reform); 2007 Making ESCOs Work: Guidance and Advice on Setting Up and Delivering an ESCO; London Energy Partnership Overview of Embedded Generation Benefits; Elexon; November 2006 Review of Distributed Generation; DTI (Department for Trade and Industry) and OFGEM; May 2007 Solutions for the Connection and Operation of Distributed Generation; Distributed Generation Coordinating Group Technical Steering Committee report; DTI and Renewable Energy Programme; July 2003 The UK Low Carbon Transition PlanNational strategy for climate and energy; Government; 2009 The UK Renewable Energy Strategy; Government; 2009 The Tradable Value of Distributed Generation; DTI (Department for Trade and Industry); 2005
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Revisions
Version Number 1 Date June 2010 Details of Changes A major revision of the Technical Guide for the Connection of Generation to the Distribution Network, DTI document reference K/EL/00318/REP (URN 03/1631). Key changes include division of Guide into three Guides for different DG applications (G83 Stage 1, G83 Stage 2 and G59/2); revision of the style of the Guide to plain English; and inclusion of chapters on the role of Distributed Generation, Technical and Commercial Interfaces and Selling Electricity (FITs and ROCs). 2 October 2010 Minor edits to the Guides: Addressing issues raised in HSE response to the consultation direction (8 July 2010); Changes to timescales associated with a Section 16 connection applications arising from DNO advice; Alteration to the text on Assessment and Design Fees and reference to the Statement of Methodology and Charges for Connection; and Inclusion of a note about dealing with disputes. Minor edits to the Guides to reflect the changes in ownership of networks from EDF Energy to UK Power Networks. Edits to the Guides to reflect the issuance of a Guidance Note from the Distribution Code Review Panel on: the application of G83/1-1 to small scale wind, and other small scale generation technologies that do not have a type testing annex in G83/1-1; and a relaxation of G59/2 to small scale generating equipment greater than 16 Amps per phase and up to 50 kW 3-phase (17 kW singlephase) provided that certain conditions are met. Edits to clarify the applicability of G83/1-1 Stage 2 to multiple generating units within different customer sites and in a close geographic region. 3.2 June 2011 Minor edits to the Guides to reflect the changes in ownership of networks from E.On Central Networks to Western Power Distribution. Update of Feed-in Tariff and Renewables Obligation sections to reflect recent changes, e.g. tariff increases and scheme review details.
November 2010
3.1
April 2011
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Revisions
Version Number 3.3 Date November 2011 Details of Changes Minor edits to the Guides to reflect rebranding of C E Electric to Northern Power Grid. At the request of Ofgem, inclusion of URL links to DNOs Long Term Development Statements (LTDS).
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